Featured Image Credit: Steve Jurvetson/Flickr [CC BY 2.0]

Tesla (TSLA) reported an EPS of Adj US$2.18 and a US$6.04 billion revenue for Q2 2020, exceeding Wall Street's estimates. After TSLA trading officially closed on July 22, Tesla released its Shareholder Letter before its Q2 2020 Earnings Call. 

TSLA stock closed at US$1,152.92.33, up +1.53% from the previous day. As soon as Tesla released its Q2 2020 Shareholders Letter, the stock shot up by almost 4% to US$1,649.00. Its market cap is now US$295.337 billion.

Highlights

• $535M increase in our cash and cash equivalents in Q2 to $8.6B
• Operating cash flow less capex (free cash flow) $418M in Q2

• Tesla reports Q2 Model S/X deliveries was 10,614 and Model 3/Y Deliveries 80,277

• Tesla says it's continuing to build capacity for Model Y at Gigafactory Berlin and Gigafactory Shanghai

• Tesla installing more machinery at Fremont Factory, which is expected to increase total Model 3/Model Y capacity from 400,000 to 500,000 units per year

• Tesla Megapack generated profit for the first time in Q2

• Storage deployments increased sequentially to 419 MWh, driven by increases in both Powerwall and Megapack

• Four quarters of sequential profitability
• Tesla listed two new factories under its "Installed Annual Capacity" graph. One for New US Factory which will make the Cybertruck and Tels Semi and one United States factory for the Tesla Semi and Roadster

Tesla (TSLA) Q2 2020 Forecasts Shows Division Among Analysts https://t.co/s9CZKCUx7z pic.twitter.com/V4HZ5H0xrB

— Tesmanian.com (@Tesmanian_com) July 22, 2020

Q2 2020 Overview

Analysts and investors alike anxiously waited for Tesla's Q2 financial results because it would determine whether or not TSLA stock could be added to the S&P500 index. Both Tesla bulls and bears were divided in their forecasts, but the majority predicted a profitable Q2 after the company released its production and delivery report. 

The Fremont Factory was still shut down at the beginning of the second quarter because of the pandemic. But Tesla still managed to report impressive production and delivery numbers, partly thanks to Giga Shanghai and demand for the Model Y.  

Q2'20 Update 2 by Claire Dev on Scribd